Principles of Marketing

Principles of Marketing free pdf ebook was written by Essi Korhonen on January 10, 2003 consist of 126 page(s). The pdf file is provided by users.tkk.fi and available on pdfpedia since December 30, 2011.

principles of marketing table of contents 1 marketing in a changing world ...

Principles of Marketing19.7 Deciding on the global marketing organization..................................................................................................12320 Marketing and society: social responsibilities and marketing ethics..........................................................12420.1 Social criticisms of marketing.............................................................................................................................12420.2 Citizen and public actions to regulate marketing................................................................................................12420.3 Business actions toward socially responsible marketing....................................................................................1264 / 126

Principles of Marketing1 Marketing in a Changing World1.1 Marketing Model – Core conceptsMarketingFive core concepts–Needs, wants, demands––––Products and servicesValue, satisfaction, qualityExchanges, transactions, relationshipsMarketsDefinition of marketing–A social and managerial process whereby individuals and groups obtain whatthey need and want through creating and exchanging products and valuewith others–Simple definition––Deliver customer satisfaction at a profitBy: (1) attracting new customers by promising superior value, and (2) keepcurrent customers by delivering satisfactionScope of marketing–Book has a broad scoping: R&D, communcation, distribution, pricing, service–Also buyers carry on marketing activities – e.g. by searching for goodsMain elements of a modern marketing system– value added in steps–Suppliers–––Company (marketer) + competitorsMarketing intermediariesEnd user marketNeeds, wants, demandsNeeds–States of felt deprivation, part of human makeup–Physical and social needsWants–The form needs take (e.g. food => hamburger)–Shaped by culture and personalityDemands–When wants are backed by buying powerProducts and servicesProducts–Anything that can be offered to satisfy a need or a want–––Physical products, services, experiences, persons, places, organizations,information, ideasExample: “smoking is bad” idea can be a product, a person can be a product in anelectionAka: satisfier, resource, marketing offerServices–Just one kind of a product5 / 126

Principles of MarketingValue, satisfaction, quality(Customer) Value––––Difference between “value gained by owning and using a product” and “cost ofobtaining the product”Value gained not necessarily monetarySimilarly cost of obtaining not necessarily monetaryCustomers act onperceived value[andperceived cost](Customer) Satisfaction–Perceived performance relative to expectationsQuality–Closely related to satisfaction––Narrow definition: no defectsBroad definition: ability to satisfy customer needs [circular definition!]Exchange, transactions,relationshipsExchange–Obtaining a desired object from someone by offering something in return–Offerings could be money, product, service, ...Transaction–A trade of values between two parties;marketing's unit of measurement!–Monetary transactions and barter transactionsRelationship (Marketing)–Going beyong short term transactions––Long-term relationships with valued customers, partners, etcMarketing network– company and all its supporting stakeholdersMarketsMarket – Economist's definition–Place (virtual or physical) where buyers and sellers meetMarket – Marketer's definition–The set ofactual and potential buyersof a product–The sellers of a product are labeled as the “industry”Industry – Marketer's definition–The sellers of a product1.2 Marketing managementWhat is marketingmanagementBook definition–Analysis, planning, implementation, and control of programs designed to––... create, build, and maintain beneficial exchanges with target buyers... for the purpose of achieving organizational objectives= Finding and increasing (sometimes decreasing) demand=Demand managementDemarketingTo shift or reduce demand, not destroy it6 / 126

Principles of Marketing2 Strategic Planning and the Marketing Process2.1 Strategic planning processStrategic planning processDefine the company's mission (mission statement)––Mission statement = statement of purpose, what do we want to accomplishRequirements––––––Market oriented (in terms of satisfying customer needs)Realistic (not too narrow or broad)SpecificFit the market environmentBase on distinctive competencesMotivatingSet company objectives and goals–Mission turned into detailed supporting objectives and goals for each level ofcompany management–For instance–––––Spend 15% of profits into R&D to achieve XSell more or reduce costs to cover costs =marketing goalThrough more salespeople or more advertisting, etc.“Increase market share by 20% by end of third year”Broad marketing strategies to cover (broad) marketing goals10 / 126

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